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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which of the following statements about industrial building components is correct?

A) Floor load refers to the weight of the building during construction.
B) Flat roofs are designed to be flat to hold water.
C) Bay depth is an important consideration when determining the layout of an industrial process.
D) Loading docks are only used to off-load products or raw materials.

2. A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?

A) The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.
B) The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.
C) The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.
D) The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.

3. Which statement about an Environmental Site Assessment (ESA) is NOT correct?

A) An ESA is not required if the buyer is purchasing the industrial property for their own use.
B) The Environmental Protection Act establishes the procedures and requirements for the first two phases of an ESA.
C) No stipulations exist for the third and final phase of an ESA due to its vast and complex nature.
D) All new commercial properties must undergo an ESA before construction begins.

4. A salesperson must ensure that a buyer client is aware of all revenue sources and expenses related to the property they are interested in purchasing. Which of the following is an accurate statement regarding potential revenue sources for a commercial property?

A) Shopping centres with more than 150 stores typically have only two types of rental revenues to cover all the operating expenses of the property: base rent and additional rent.
B) Commercial office owners have only one type of potential rental income, which is percentage rent, as the owner themselves pay for the operating expenses of the property.
C) Retail commercial property owners have three types of potential rental income: base rent, additional rent, and percentage rent.
D) Every commercial property, whether an office building, an industrial property, a retail property, or land, has a single source of revenue, which is the base rent.

5. A salesperson includes a well-drafted condition in an agreement of purchase and sale for their buyer client to arrange a new first mortgage for an industrial property. The buyer later changes their mind and does not want to borrow money for the purchase. What should the buyer's salesperson use to remove the condition?

A) Mutual release
B) Waiver
C) Acknowledgment
D) Notice of fulfillment

Solutions: